(Marks: 40) Read the below case study and answer the questions that follow. Volkswagen Group South Africa Established in 1946, Volkswagen Group South Africa is a wholly owned subsidiary of Volkswagen Aktiengessellschaft (VWAG) in Germany. It is the largest German investment in South Africa and is a major contributor to foreign direct investment, technology transfer and skills development. Volkswagen Group South Africa is located in Uitenhage, an industrial town some 35 km from Port Elizabeth in the Eastern Cape. Our first priority is to build a strong and successful business that protects and creates jobs within Volkswagen and our broader family of suppliers and franchised dealers. As a multi-national corporation, Volkswagen has a strong commitment to boost foreign direct investment in South Africa and promote the transfer of world-class technology, knowledge and skills. Hundreds of Volkswagen Group South Africa employees at all levels have received training at Volkswagen plants throughout the world. To manage the operation that gets vehicles from the factory to the dealer network, carmakers rely on local logistics providers for end-to-end support across the finished vehicle supply chain, from plant logistics to dealer distribution. The end-to-end (E2E) supply chain means integrated systems, agile processes, and collaboration for all supply chain functions, from order planning and scheduling, shipping, and vehicle processing to final delivery to the end customer or dealer. Right now, the biggest challenge facing global logistics is lack of space on vessels. End-to-end logistics services helps to address this by allowing transport logistics providers to work very closely with the Original Equipment Manufacturers (OEM) right from the forecasting and planning stage up until delivery of the vehicle. "The benefits for carmakers of using the same provider for logistics and processing are clear: efficient communication, quality control, and visibility across the supply chain," says Rider Liu, VP sales development, Wallenius Wilhelmsen, EMEA. "All of this helps to minimise delays and reduce risks." (c) The Independent Institute of Education (Pty) Ltd 2023 Page 5 of 7 21;22;23 2023 With an expansive fleet of RoRo vessels and a global trade network that includes deep sea and short sea services, logistics transport providers support OEMs to ship large volumes to their key markets across the world. Beyond that, the inland distribution network means logistics transport providers can help manufacturers with the final leg of the journey, too, safely transporting vehicles to end customers by rail and truck. But getting vehicles to their end destination is only one piece of the puzzle-making sure they're in dealer-ready condition is of the utmost importance. Adapted from sources: Volkswagen. 2022. Volkswagen Experience - Corporate Information. [Online] Available at: https://www.vw.co.za/en/volkswagen-experience/corporate- information.html\#: :text=Established\%20in\%201946\%2C\%20Volkswagen\%20Group,technology\%2 0transfer\%20and\%20skills\%20development. [Accessed 22 June 2023]. Wallenius Wilhelmsen. 2022. End-to-end automotive logistics for a seamless supply chain. [Online] Available at: https://www.walleniuswilhelmsen.com/insights/end-to-end-automotive-logistics-fora-seamless-supply-chain. [Accessed 22 June 2023]. Q.3.1 Discuss the Purchasing phase of service purchasing in relation to With an expansive fleet of RoRo vessels and a global trade network that includes deep sea and short sea services, logistics transport providers support OEMs to ship large volumes to their key markets across the world. Beyond that, the inland distribution network means logistics transport providers can help manufacturers with the final leg of the journey, too, safely transporting vehicles to end customers by rail and truck. But getting vehicles to their end destination is only one piece of the puzzle - making sure they're in dealer-ready condition is of the utmost importance. Adapted from sources: Volkswagen. 2022. Volkswagen Experience - Corporate Information. [Online] Available at: https://www.vw.co.za/en/volkswagen-experience/corporateinformation.html\#: :text=Established\%20in\%201946\%2C\%20Volkswagen\%20Group,technology\%2 0transfer\%20and\%20skills\%20development. [Accessed 22 June 2023]. Wallenius Wilhelmsen. 2022. End-to-end automotive logistics for a seamless supply chain. [Online] Available at: https://www.walleniuswilhelmsen.com/insights/end-to-end-automotive-logistics-fora-seamless-supply-chain. [Accessed 22 June 2023]. Q.3.1 Discuss the Purchasing phase of service purchasing in relation to Volkswagen South Africa when needing to purchase services of a logistics provider to export finished goods. Your answer must include but is not limited to addressing: - determining the supply base - negotiations - contract development Note: you are required to provide a paraphrased overview of the concepts before providing at least 1 application point for each. Q.3.2 Discuss any two key transport variables that would be important in the transportation decision made by Volkswagen South Africa when exporting cars. Note: you are required to provide a paraphrased overview of the concepts before providing at least 1 application point for each. (C) The Independent Institute of Education (Pty) Ltd 2023 Page 6 of 7 21;22;23 2023 Q.3.3 Explain why service purchasing is important for Volkswagen South Africa. Note: you are required to provide at least 3 paraphrased theoretical points (12) and at least two application points